AWS – On-Prem vs Cloud

810x430-cloud-vs-on-premise-bannerWelcome to the second blog in our Amazon Web Services series, today we will be discussing the pros and cons of moving your data and infrastructure out of the conventional big, heavy, expensive servers sitting on-site to a more cost-effective and reliable solution in the cloud.

When it comes to doing a comparison of on-premises versus cloud, you want to start with outlining all the costs your organization incurs with running and operating your own infrastructure on-premises. These costs usually include, but are not limited to: server costs, storage costs, network costs and IT labour costs.

Server costs typically include hardware (server, rack chassis, switches, maintenance, etc.) and software (operating system, virtualization licenses, maintenance, etc.) costs. Organizations can sometimes forget the facilities costs – the space, power and cooling required for the server to run and operate efficiently.

Storage costs normally include hardware costs (storage disks, SAN/FC switches, etc.), storage admin costs as well as facilities costs required to power, cool and have enough space for each machine to run optimally.

Network costs are comprised of network hardware costs (LAN switches, load balancer bandwidth costs, etc.), network admin costs and facilities costs for space, power and cooling.

IT labour costs are a huge factor when hiring the most qualified server admin and virtualization admin.

Once you have all of the above costs accounted for, AWS has a great tool to help each organization visualize and immediately see the amount of money they will be saving if they chose to make the switch to AWS. The tool is called AWS TCO calculator and it is a very easy tool to work with. It provides a very detailed cost breakdown, displaying report, graphs, charts and a 3-year total cost of ownership comparison between your existing setup and AWS.

For every organization looking to reduce their server, storage, network and labour costs, make sure to check out this great tool created by AWS to see how much money your organization can save by moving your infrastructure to AWS.


Aly Kaba

Business Development Manager

Project X Ltd.




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